Landlord Rights: Background Checks, Possessions, Setting and Collecting Unpaid Rent

Landlord rights over tenant background checks

Most of states allows you to charge a tenant for a background check, but there are numerous regulations on the practice. You can charge only one prospective tenant at a time per available unit. You cannot charge for a background check unless there is an available unit.

When you receive payment for a background check or credit check, give a written receipt to the prospective tenant. You should also give a disclosure to the prospective tenant that identifies the screening agency by name, address, and phone number. The disclosure should also identify the criteria for rejecting prospective tenants.

You can reject prospective tenants only for reasons listed in the disclosure, or you have to return the deposit. You also have to return the deposit if you rent the unit to a prior applicant or if you do not perform a background or credit check for the prospective tenant. You must notify the prospective tenant within 14 days after you reject the application.

Finally, you can only charge for the actual costs of screening prospective tenants. Any additional charges must be refunded.

Landlord rights over setting property's rent

There are several different ways to determine the proper rent for your investment property: cost, market, and other metrics.
The best way to set rent is to check the advertised rents for your competitors. Start with Craigslist and other rental sites like rent.com, apartment.com, etc. Use the map feature to check units in your area, but you should also search for comparables outside the neighborhood using the number of bedrooms and square footage.

You can also set the rent to cover your expenses (mortgage, taxes, insurance). The cost method may give you a value too high or too low because it does not consider the outside market in which prospective renters view your property.
A quick method for determining rent is to use the estimated tax value provided by the county. For a single-family home, multiply the tax value by 0.006 or 0.008 to determine the gross monthly rent. For a condominium with HOA dues, a higher multiple of 0.010 to 0.015 is appropriate to cover the HOA assessments.

When you set the rent, perform multiple showings and choose the renter with the most consistent income. If you set the rent too high, you won’t have multiple tenants from which to choose.

Finally, make sure you have a good lease document to sign with your tenants to protect yourself. Remember that even the highest rent cannot cover the damage that a bad tenant can cause.

Landlord rights over collecting unpaid rent

If your former tenants owe you money, the way to collect is to sue them in conciliation (small claims) court. Here are several things that you should know before you file your case.

• You should attempt to collect the money by sending a letter to the tenants first. Sending a letter is quicker and more cost effective than suing. Inform the tenants that you will be suing them if they do not pay.
• You will need to know the tenants’ new address in order to sue them or send them a letter.
• The conciliation lawsuit form is available for free online. The Fourth District, Hennepin County, uses a special form.
• The filing fee is $70 or $75, depending on the county. You can add the filing fee to your judgment if you win.
• You can sue in the county where your rental property is located or where the tenants now live.
• You can appear in court without an attorney, but you should probably speak with an attorney before you file the suit to ensure that you don’t overlook something.
• The maximum amount that you can collect in small claims court is $15,000.
• If you sue for more than $2,500, you need to serve the defendants by certified mail.
• Once you obtain a judgment, you must pay $40 to transcribe the judgment, after a waiting period of 20 days.
• If the tenant does not pay you after transcribing the judgment, you have three methods for involuntarily collecting: (1) wage garnishment, (2) bank levy, and (3) placing a judgment lien on real property.

Landlord rights over tenants possessions

After a tenant moves out, you have a duty to store any property that the tenant has left behind. If you store the property on-site, you can sell or dispose of the property after 28 days. If you store the property off-site, you can sell or dispose of the property after 60 days.

Before selling the items left by the tenant, you must give notice to the tenant at least 14 days before the sale or disposal. Service must be in the form of certified mail to the tenant’s “last known address or usual place of abode.” Minn. Stat. s 504B.271. You must also post notice of the sale or disposal at the rental property in a conspicuous place for two weeks before you sell or dispose of the property.

Determining the tenant’s new address can be difficult. Tenants who move out without taking all of their belongings usually do not tell their landlords their new address. You should try calling or emailing the tenant to determine the new address. Determining the tenant’s new address is important for several reasons, including returning the security deposit or sending a letter explaining the reasons for withholding the deposit.

If the tenants ask to pick up their belongings, you should allow the tenant to have their belongings. There are legal penalties for not giving back the items to tenants.

If you are concerned about the cost of storing property, the law allows you to bill your storage costs to the tenant. If you store the property in a storage facility, you can ask the tenant to pay the storage costs before allowing the tenant to enter the storage unit.